The Optimal Cash Replenishment Level Will Increase with All of the Following

question 16

Multiple Choice

The optimal cash replenishment level will increase with all of the following changes EXCEPT:

• A)the transaction cost decreases.
• B)the annual demand for cash increases.
• C)the interest rate decreases.
• D)All of the options will increase the optimal cash replenishment level.

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Definitions:

McCarran-Ferguson Act

A U.S. federal law enacted in 1945 that exempts the business of insurance from most federal regulation, leaving regulation primarily to the states.

Robinson-Patman Act

A 1936 U.S. law aimed at preventing anticompetitive practices by producers, specifically addressing price discrimination.

Nolo Plea

A legal plea where the defendant neither admits nor disputes a charge, allowing for a conviction without an admission of guilt.

Consent Decree

A legal agreement that resolves a dispute between two parties without admission of guilt, but with the court still retaining enforcement power.